Nigeria Acquires 60% of Afreximbank’s $30 Billion Funding for Africa’s Energy Sector

The African Export-Import Bank (Afreximbank) says Nigeria is among the largest beneficiaries accounting for about 60% of its US$30 billion funding of the energy sector in Africa.

The bank further attributes its ability to contribute modestly to the oil and gas sector to its predominance of African ownership and control.

Prof. Benedict Oramah, the President of the African Export-Import Bank, expressed these thoughts at the 7th Nigeria International Energy Summit (NIES 2024) in Abuja on Wednesday.

Afreximbank President spoke on “Sustainable Strategies for Energy Leadership: Navigating Security, Transition and Finance in a Changing World”.

“The support provided to the sector by Afreximbank is in excess of US$30 billion. Nigeria has been one of the largest beneficiaries accountings for almost 60% of the total funding of the sector,“ he said.

Oramah, represented Haytham Eimaayergi, the Executive Vice President at Global Trade Bank (GTBA), remarked on the continent’s shortfall in established traditional energy infrastructure.

Meanwhile, he suggested that this deficiency creates a unique opportunity to leap directly into adopting more efficient renewable energy solutions.

He noted that the withdrawal of financial support by many international banks from the oil and gas sector has resulted in limited investment availability for the industry, thereby influencing exploration and production negatively.

“Our aspiration in the area of energy security and energy transition will remain aspiration unless we have access to adequate funding resources that we control.

“Afreximbank is committed to helping manage and operate Africa energy bank to ensure that it has the best possible chances of success.

“The strategic goal of the Africa Energy Bank is to play a leadership role in shaping the energy landscape in Africa, through strategic partnerships with proven African and international financial institutions and investors.

“It will also provide sustainable financing in the area of the oil and gas sector,” he added.

Speaking further, Oramah stated that Afreximbank and Africa Petroleum Producer Organisation (APPO) are in the final stages of setting up the African Energy Bank.

He explained that the Africa Energy Bank which is being set up under a multilateral financial institution agreement will focus on providing funding for the energy sector in the continent.

On his part, the Secretary-General of African Petroleum Producers Organisation (APPO), Dr Omar Ibrahim, announced that the decision on which country the proposed African Energy Bank will be sited, is to be taken by the end of first quarter of 2024.

Seven countries including Nigeria, Algeria, Egypt, Ghana, South Africa, Benin Republic, Cote d’Ivoire are jostling for it.